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Without any regard for the security issues, the conflict would be simple. That's not very helpful. Deserved or not, suicide bombings and missiles are real security issues.Recency bias. Post 67, many a non-violent Palestinian demonstrations were met with Israeli violence [0]. And this has since kept escalating with each round. You'd think a peoples so utterly out-gunned would lay low, but they somehow aren't. There's something else that's fanning the flames, keeping the hatred going. Potentially, by whatever/whoever stands to benefit from the conflict, either financially (hi-tech [1]) or politically (Revisionists/Hamasniks/PA).
> the argument is that this would be a good idea
The argument is that, that ship has sailed, and so other than 2SS (67 borders), any other enclave-like arrangement (ex: Oslo) will not bring peace (instead lead to Goebbels-esque narratives & Fascist-esque behaviour). Though, 67 borders sounds like a recipe for a civil war.
[0] https://x.com/idanlandau/status/1876619129924514076 / https://archive.vn/Akaym
[1] https://www.calcalistech.com/ctechnews/article/581m21wyg / https://archive.vn/GXYG7